Make Annuities Part of Your California Retirement Plan
In the early 1970s, many states established weekly drawings for lotteries, which are now typically paid as annuities.
While hoping to strike it rich by winning the lottery may not be a great retirement plan, using financial annuities is one possible option. They can fit quite nicely into your California retirement plan.
Annuities are contracts with insurance companies. They provide investors with the opportunity to accumulate wealth on a tax-deferred basis and obtain an income stream that is guaranteed for life. Just like the lottery winner, the owner of one receives a payout over the course of many years.
Based on the above information, financial annuities might be appealing to you.
It’s not that an annuity should replace other retirement-savings vehicles, such as 401(k) plans, as both are desirable for different reasons. A 401(k) plan, for example, allows an investor to save money on a pretax basis and grow that money on a tax-deferred basis. However, a 401(k) plan doesn’t provide a guaranteed income stream.
As a result, these two savings vehicles can complement one another.
If you’re planning for retirement and are concerned about running out of money, it may be wise to educate yourself about annuities.
The marketplace for annuities has changed dramatically over the past decade. Innovations have taken place that may make annuities very appealing to those planning for retirement.
If you’re interested in purchasing one, your financial advisor can help you put together a strategy for adding one to your California retirement-savings plan.
Speak to an independent California insurance agent -they can help you select a plan that is appropriate for you, given your individual financial circumstances.